PRESS RELEASE: Capgemini Reiterates Its Profitability Targets for 2009

CAPGEMINI (Paris:CAP):

The decline in the economic environment in the third quarter fuelled a sharp reduction in corporate IT spending. Against this challenging backdrop, the Capgemini Group reported consolidated revenues of EUR1,946 million, down 9.0% on a like-for-like basis versus third-quarter 2008 (constant Group structure and exchange rates).

 
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Q3 2009revenues    Change          Q3 2008revenues   Q3 2009 vs. Q3 2008 
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EUR1,946m            reported        EUR2,098m           -7.3% 
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                   like-for-like                     -9.0% 
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The following like-for-like changes can be observed versus third-quarter 2008:

 
 
    -- Business segments: Outsourcing 

Services fulfilled its role as a stabilizing force despite posting a

slight 2.7% decline in revenues due to the expected - and announced -

fall in business under a major contract in North America. Revenues for

the Group's other three business segments retreated 12.5% on average,

with those activities most vulnerable to the economic cycle

(Consulting Services and Local Professional Services) recording the

largest decline.

 
    -- Regions: UK and Ireland 

continued to gain ground, delivering a 1.5% increase in revenues.

Although revenues for North America were down 7.3% on the same

year-ago period, this was a better performance than in the three

months to June 30, 2009. The Group's other regions saw revenues

contract 13.3% on average, with France posting a fall of 9.9%.

Bookings in the three months to September 30, 2009 represented EUR1,981 million. Bookings advanced 7% for Outsourcing Services compared with third-quarter 2008. In the Group's other three businesses (Consulting Services, Technology Services and Local Professional Services), the book-to-bill ratio remained above 1.

Like-for-like, Capgemini's revenues for fourth-quarter 2009 should experience a similar decline to that recorded in the three months to September 30. Thanks to its extremely tight rein on costs, the Group is able to confirm its operating margin guidance of around 7% for full-year 2009.

Although there are signs that activity is stabilizing and even picking up in some market segments, benefits are not expected to filter through immediately. To leverage the upturn, Capgemini has decided to launch five comprehensive service offerings between now and March 2010. The offerings focus on high-growth markets such as those targeted by Business Information Management (BIM), the services package just announced.